Navy Awards $378.7M Construction Contract for Oahu Administrative Spaces Repair to Hensel Phelps
Contract Overview
Contract Amount: $378,741,114 ($378.7M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Defense
Start Date: 2021-03-04
End Date: 2026-02-27
Contract Duration: 1,821 days
Daily Burn Rate: $208.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AWARD CONSTRUCTION CONTRACT FOR REPAIR OF ADMINISTRATIVE SPACES, VARIOUS LOCATIONS, OAHU, HAWAII
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $378.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: AWARD CONSTRUCTION CONTRACT FOR REPAIR OF ADMINISTRATIVE SPACES, VARIOUS LOCATIONS, OAHU, HAWAII Key points: 1. Significant contract value for facility repair and construction. 2. Hensel Phelps is a major player in large-scale construction projects. 3. Potential risks include project delays, cost overruns, and unforeseen site conditions. 4. Spending falls within the broad 'Commercial and Institutional Building Construction' sector.
Value Assessment
Rating: good
The contract value of $378.7 million for repair of administrative spaces appears substantial. Benchmarking against similar large-scale government construction contracts for facility renovation and repair is necessary to fully assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Impacts military personnel and civilian employees working in administrative spaces on Oahu. Supports local economy through construction jobs and material procurement in Hawaii. Ensures functional and safe working environments for essential government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long duration (1821 days) increases risk of scope creep and price escalation.
- Fixed-price contract may not fully account for unforeseen construction challenges.
- Geographic location in Hawaii can lead to higher material and labor costs.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Experienced contractor, Hensel Phelps, likely brings efficiency and expertise.
- Clear objective: repair of administrative spaces, suggesting well-defined scope.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, which involves the building, altering, repairing, or improving of nonresidential structures. Government spending in this sector is substantial, covering a wide range of facilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The long duration of the contract necessitates diligent monitoring to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost escalation due to long contract duration.
- Risk of unforeseen site conditions impacting schedule and budget.
- Fixed-price contract may limit flexibility for necessary scope adjustments.
- Dependency on a single large contractor for a critical infrastructure project.
- Geographic challenges in Hawaii may increase logistical costs.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $378.7 million to HENSEL PHELPS CONSTRUCTION CO. AWARD CONSTRUCTION CONTRACT FOR REPAIR OF ADMINISTRATIVE SPACES, VARIOUS LOCATIONS, OAHU, HAWAII
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $378.7 million.
What is the period of performance?
Start: 2021-03-04. End: 2026-02-27.
What specific administrative spaces are being repaired, and what is the condition assessment that justifies this significant investment?
The specific administrative spaces are not detailed in this award notice. A thorough condition assessment would typically precede such a large contract, identifying structural issues, outdated systems, or functional deficiencies. Understanding these details is crucial for validating the necessity and scope of the repairs, ensuring the investment directly addresses critical needs and improves operational efficiency for the personnel utilizing these facilities.
What mechanisms are in place to manage potential cost overruns or delays given the fixed-price nature and long duration of this contract?
Given the fixed-price contract and its 1821-day duration, robust change order management processes and contingency planning are essential. The Navy likely employs contract officers and inspectors to monitor progress, quality, and adherence to the original scope. Clear communication channels with Hensel Phelps and proactive risk mitigation strategies will be key to controlling costs and preventing schedule slippage.
How will the success of this contract be measured in terms of improved functionality and employee satisfaction post-repair?
Success will be measured through several key performance indicators. Post-completion inspections will verify that repairs meet specified quality standards and building codes. User feedback surveys from personnel occupying the administrative spaces can gauge improvements in functionality, comfort, and overall satisfaction. Additionally, tracking any reduction in maintenance issues or operational disruptions in the repaired areas will provide objective evidence of the contract's effectiveness.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247817R4032
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 841 BISHOP ST STE 2001, HONOLULU, HI, 96813
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $378,741,114
Exercised Options: $378,741,114
Current Obligation: $378,741,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247820D4003
IDV Type: IDC
Timeline
Start Date: 2021-03-04
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2025-12-09
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